He has been battling to regain control of Lululemon since the board forced him to resign as chair last December. Wilson had fought to oust two members of the board of directors and threatened to lead a shareholder revolt at the AGM, bolstered by his large stake in the company.

Instead, Wilson will sell half of his stake to private equity firm Advent International for $845 million and Advent will get two seats on the Lululemon board, expanding it to 12 members. Advent is a significant minority shareholder of Lululemon.

Advent senior manager David Mussafer becomes co-chair of Lululemon and Steve Collins also joins the board.

Wilson has been critical of board chair Michael Casey, saying his approach is too focused on short-term growth.